{"id":159656,"date":"2024-01-03T14:05:06","date_gmt":"2024-01-03T14:05:06","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=159656"},"modified":"2024-01-03T17:53:05","modified_gmt":"2024-01-03T17:53:05","slug":"radiant-capital-loses-more-than-4-4-million-in-cyber-attack","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/radiant-capital-loses-more-than-4-4-million-in-cyber-attack\/","title":{"rendered":"Radiant Capital Loses More Than $4.4 Million in Cyber attack"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The world of decentralized finance (<\/span><\/span><a href=\"https:\/\/crypto-economy.com\/defi-decentralized-finances\/\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">DeFi<\/span><\/span><\/a><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">) <\/span><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">has witnessed another shocking incident, following an attack on Radiant Capital recently.<\/span><\/span><\/b><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This time, <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">cross-chain lending protocol Radiant Capital found itself in the eye of the storm<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> following a <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">flash loan attack<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> that resulted in a <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">significant loss of $4.5 million.<\/span><\/span><\/strong><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today, we received a report of an issue with the newly created native USDC market on Arbitrum.   After validation by Radiant developers and the wider Web 3 security community, the Radiant DAO Council paused lending\/borrowing markets on Arbitrum temporarily while this is\u2026<\/p>\n<p>&mdash; Radiant Capital (@RDNTCapital) <a href=\"https:\/\/twitter.com\/RDNTCapital\/status\/1742338729925112272?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 3, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The exploit, <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">identified<\/span><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> as a cumulative precision issue in the newly created <\/span><\/span><a href=\"https:\/\/crypto-economy.com\/stablecoins\/\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">USDC<\/span><\/span><\/a><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> market on Arbitrum<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">, led to a temporary halt of its lending and borrowing markets.<\/span><\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8ALERT\ud83d\udea8Our AI-powered system has identified multiple <a href=\"https:\/\/twitter.com\/hashtag\/rugpull?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#rugpull<\/a> transactions on <a href=\"https:\/\/twitter.com\/hashtag\/ARB?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#ARB<\/a> linked to this address: <a href=\"https:\/\/t.co\/GZKVDypuAh\" target=\"_blank\">https:\/\/t.co\/GZKVDypuAh<\/a>. The address has been involved in creating numerous tokens.<br \/>The address has bridged 500K <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$USDT<\/a> to <a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$ETH<\/a>, then swapping it to <a href=\"https:\/\/twitter.com\/search?q=%24DAI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$DAI<\/a> before depositing\u2026 <a href=\"https:\/\/t.co\/4l8JmdXmcd\" target=\"_blank\">pic.twitter.com\/4l8JmdXmcd<\/a><\/p>\n<p>&mdash; \ud83d\udea8 Cyvers Alerts \ud83d\udea8 (@CyversAlerts) <a href=\"https:\/\/twitter.com\/CyversAlerts\/status\/1742126043006116054?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 2, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The attack, described by blockchain security firm Beosin <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">as a \u201cflash loan attack,\u201d<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> was based on <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">a code error that allowed the attacker to manipulate a critical parameter.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Taking advantage <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">of a window of time<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> during the activation of a new market in the system, the attacker <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">executed repeated deposit and withdrawal operations<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">, thus siphoning a total of <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">USD 4.5 million in Ether from the protocol.<\/span><\/span><\/strong><\/p>\n<h2><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Radiant Capital acted quickly upon receiving reports of the issue in its native USDC market<\/span><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The platform <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">paused all activities on Arbitrum,<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> assuring investors that no more funds were at risk.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">They pledged to conduct <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">a thorough investigation to determine the root cause of the attack and provide transparency into the incident.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">However, the challenge <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">was not just limited to the attack itself.<\/span><\/span><\/strong><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-159660\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/Radiant.jpg\" alt=\"Flash Loan Attack: Radiant Capital Suffers USD 4.5 Million Losses on Arbitrum\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/Radiant.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/Radiant-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/Radiant-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Radiant Capital also <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">had to deal with fake social media accounts<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">, spreading phishing links that could affect unsuspecting users.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This prompted warnings about <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">the need for caution until the situation was resolved and the Arbitrum markets were unblocked.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Despite the setback, <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Radiant Capital remains a decentralized lending protocol with cross-chain functionality.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to <\/span><\/span><a href=\"https:\/\/defillama.com\/protocol\/radiant\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">DefiLlama<\/span><\/span><\/a><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">, <\/span><\/span><strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">it has a total value locked of around USD 315 million<\/span><\/span><\/strong><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">, highlighting its relevance and position in the DeFi ecosystem.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world of decentralized finance (DeFi) has witnessed another shocking incident, following an attack on Radiant Capital recently.<\/p>\n","protected":false},"author":33,"featured_media":159669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111,84,74],"tags":[5271,5287,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159656"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=159656"}],"version-history":[{"count":5,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159656\/revisions"}],"predecessor-version":[{"id":159666,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159656\/revisions\/159666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/159669"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=159656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=159656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=159656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}